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Click on the icon to read the news clip, then answer the following questions. The graph shows the market for milk in Venezuela when a price control is in effect. Draw a shape that represents: ) consumer surplus. Label it CS. 2) producer surplus. Label it PS. 3) the deadweight loss. Label it DWL Also draw a shape that show the resources lost from time spend in line. Label it Loss. Moving from a milk market with no price controls to a milk with price controls producer surplus. A. increases; decreases B. decreases; decreases OC. decreases; increases D. increases; increases in the market for cheese. OA. the price is below the market equilibrium OB. total surplus is maximized and no deadweight loss arises C. a deadweight loss arises OD. consumer surplus decreases and producer surplus decreases consumer surplus and 60- 50- 40- 30- 20+ 10- Price (bolivars per gallon) 40 $ Price control D Q Q 300 100 200 300 400 500 600 700 Quantity (gallons of milk) >>> Draw only the objects specified in the question.

Click on the icon to read the news clip, then answer the following questions. The graph shows the market for milk in Venezuela when a price control is in effect. Draw a shape that represents: ) consumer surplus. Label it CS. 2) producer surplus. Label it PS. 3) the deadweight loss. Label it DWL Also draw a shape that show the resources lost from time spend in line. Label it Loss. Moving from a milk market with no price controls to a milk with price controls producer surplus. A. increases; decreases B. decreases; decreases OC. decreases; increases D. increases; increases in the market for cheese. OA. the price is below the market equilibrium OB. total surplus is maximized and no deadweight loss arises C. a deadweight loss arises OD. consumer surplus decreases and producer surplus decreases consumer surplus and 60- 50- 40- 30- 20+ 10- Price (bolivars per gallon) 40 $ Price control D Q Q 300 100 200 300 400 500 600 700 Quantity (gallons of milk) >>> Draw only the objects specified in the question.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Click on the icon to read the news clip, then answer the following questions. The graph shows the market for milk in Venezuela when a price control is in effect. Draw a shape that represents: 1) consumer surplus. Label it CS. 2) producer surplus. Label it PS. 3) the deadweight loss. Label it DWL. Also draw a shape that show the resources lost from time spend in line. Label it Loss. Moving from a milk market with no price controls to a milk with price controls producer surplus. OA. increases; decreases B. decreases; decreases OC. decreases; increases OD. increases; increases In the market for cheese, O A. the price is below the market equilibrium O B. total surplus is maximized and no deadweight loss arises OC. a deadweight loss arises O D. consumer surplus decreases and producer surplus decreases consumer surplus and 60- 50- 40 30- 20- 10- Price (bolivars per gallon) 40 0 $ Price control D $300 100 200 300 400 500 Quantity (gallons of milk) >>> Draw only the objects specified in the question. Q 600 700
Transcribed Image Text:Click on the icon to read the news clip, then answer the following questions. The graph shows the market for milk in Venezuela when a price control is in effect. Draw a shape that represents: 1) consumer surplus. Label it CS. 2) producer surplus. Label it PS. 3) the deadweight loss. Label it DWL. Also draw a shape that show the resources lost from time spend in line. Label it Loss. Moving from a milk market with no price controls to a milk with price controls producer surplus. OA. increases; decreases B. decreases; decreases OC. decreases; increases OD. increases; increases In the market for cheese, O A. the price is below the market equilibrium O B. total surplus is maximized and no deadweight loss arises OC. a deadweight loss arises O D. consumer surplus decreases and producer surplus decreases consumer surplus and 60- 50- 40 30- 20- 10- Price (bolivars per gallon) 40 0 $ Price control D $300 100 200 300 400 500 Quantity (gallons of milk) >>> Draw only the objects specified in the question. Q 600 700
News clip Venezuelans organize to overcome food shortages The government of Venezuela controls the price of food and there are shortages of milk, rice, coffee, pasta, sugar, corn flour and cooking oil. Eggs have disappeared from store shelves. While people stand in line for milk, cheese and yogurt are abundant. People who buy milk at the low price, either sell it for a profit or exchange it for food items that other families stand in line to buy. Source: www.teleSURtv.net/english, November 27, 2015 Print Done x
Transcribed Image Text:News clip Venezuelans organize to overcome food shortages The government of Venezuela controls the price of food and there are shortages of milk, rice, coffee, pasta, sugar, corn flour and cooking oil. Eggs have disappeared from store shelves. While people stand in line for milk, cheese and yogurt are abundant. People who buy milk at the low price, either sell it for a profit or exchange it for food items that other families stand in line to buy. Source: www.teleSURtv.net/english, November 27, 2015 Print Done x
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